USD/BRL is consolidating - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that for the USD/BRL cross, further range trading between the March peak at 4.0133 and the 200 day moving average at 3.8523 has been seen.

Key Quotes

“The March high was made slightly below the 4.0372/4.0763 zone, consisting of the September low and the 78.6% Fibonacci retracement. This area should cap, if reached. Support lies at the 200 day moving average and the late January high and current April low at 3.8472/3.8147 comes in along the four month support line at 3.8379.”

“Further down sits the March low at 3.7382, only an unexpected fall below which would make us bearish and put the January and February lows at 3.6753/3.6373 back on the plate.”